Article 6 Disproportionate rent increase

Except in a case to which paragraph (6) or (7) applies, and for the purposes of article 4(1)(b)(ii), where the average rent increase differential, as calculated in accordance with paragraph (4), for an appropriate authority has a value greater than zero, the appropriate amount for such part of the housing benefit qualifying expenditure as is attributable to rent rebates granted during the relevant year shall be 25 per cent. of that portion of the housing benefit qualifying expenditure as is determined in accordance with paragraph (4).

For the purposes of paragraphs (3) and (4)–

In this article the average rent increase differential for each appropriate authority shall be calculated by applying the formula–

where

• C, F, I and L each has the value determined in accordance with paragraph (2).

The portion of housing benefit qualifying expenditure attributable to rent rebates granted during the relevant year and referred to in paragraph (1), shall be determined by dividing the average rent increase differential by the product of (F×L), where F and L have the values given to them in paragraph (2) respectively.

In this article–

• “average” means the arithmetic mean;

• “Category A tenants” means tenants of the authority, other than a specified person, who on the first and second relevant dates were in receipt of rent rebates and were resident at the same address on both dates;

• “Category B tenants” means tenants of the authority, other than a specified person, who were not in receipt of rent rebates on the first and second relevant dates but were resident at the same address on both dates;

• “Category 1 dwellings” means dwellings rented out by the authority on both the second and the third relevant dates in respect of which, on the third relevant date, the persons, other than a specified person, liable to pay such rent were in receipt of rent rebates;

• “Category 2 dwellings” means dwellings rented out by the authority on both the second and the third relevant dates in respect of which, on the third relevant date, the persons, other than a specified person, liable to pay such rent were not in receipt of rent rebates;

• “first relevant date” means a date, other than a day falling in a rent free period, determined by the authority, occurring in March 1989;

• “second relevant date” means the 11th November 1991;

• “third relevant date” means the date in March 1993 which is the same as the first relevant date, but if the date in March 1993 falls in a rent free period the date in March which is closest to it and which does not fall in a rent free period;

• “rent” means either–

  1. (a)

     the payments specified in sub-paragraphs (a) to (j) in paragraph (1) of regulation 10 of the Housing Benefit Regulations (rent)^f1; or

  2. (b)

     the eligible rent,

  as the authority may determine, provided that wherever the expression “rent” occurs in paragraph (2) it has the same meaning throughout in relation to that authority; and

• “a specified person” means a person required to pay an amount to an authority under section 35(2)(b) of the Housing (Scotland) Act 1987^f2for accommodation which is board and lodging accommodation.

This article shall not apply in a case to which either article 9 or 10 applies.

In England and Wales this article shall only apply to expenditure attributable to rent rebates granted by new town corporations and the Development Board for Rural Wales.